It's possible to keep things relatively simple when it's just you running your business, but even when you bring on just one employee, some important changes need to be made to make sure you don't find yourself in legal trouble.
You need to get serious about bookkeeping and accounting because one mistake can cause many problems for you and your business. Before you hire your first employee, you will need to get an employment identification number (EIN) from the US Internal Revenue Service (IRS). The EIN is your tax ID, and you need it for everything you do involving the IRS and various state agencies. Once you have your EIN, you must deal with withholding Federal Income Tax, State Tax, and reporting federal government wages paid and taxes withheld for each employee.
Something simple you may not even think about is verifying that your new hire is eligible to work in the United States. You need to have the employee fill out a Form I-9; this does not need to be sent to the government, but you do need to keep it on file and check the necessary documents to verify their eligibility (usually just things like their driver's license and Social Security card).
There are more things you will need to worry about to make sure your business is operating legally and that you are legally protected from any potential problems that could come down the pipeline. If you do encounter any issues, you may want to contact a business litigation lawyer. Houston business owners have found great success working with Voss Law Firm when seeking the assistance of a Texas business litigation lawyer. Call Voss Law Firm today for a free consultation at 888-614-7730, and you are also invited to request a free copy of Bill Voss's book, Business Disputes – Critical Information for All Business Owners.